Texas exempt personal property cap raised to $50,000/$100,000

Will I lose all my property if I file for Bankruptcy in Texas?For most people living in Texas, bankruptcy does not mean that you will lose your property. For most Texans, Chapter 7 results in losing only your debts.

Posted on Sep 10, 2015

Good news, as of September 1, 2015, the amount of personal property that can be claimed as exempt in Texas is increased to $50,000 for a single adult, and $100,000 for a family, both after deducting the amount of any liens on the property. Texas Property Code Section 42.001 is the Texas law that was amended.

"Exempt property" is property that cannot be seized by creditors or a bankruptcy trustee to pay your debts. "Personal property" means property that is not real estate or land. We still have an unlimited homestead exemption in Texas, that is, a creditor or bankruptcy trustee cannot force the sale of your homestead, with certain very limited exemptions.

And your Texas-exempt personal property must be items that are described in the law, generally including furniture, family heirlooms, food, farming or ranching vehicles and implements, tools and equipment used in a trade or business, clothes, jewelry within certain limits, 2 firearms, a vehicle for every licensed driver, certain animals and pets, and retirement plans and insurance.

If you live in the Houston, Texas area and are in debt trouble or considering filing bankruptcy, don't try to figure out what or how much of your property is exempt; it's complicated. Call our office and make an appointment to meet with Mr. Black or his associate attorney. They can advise you as to what property is exempt and what you may lose to seizure by creditors. They will also be happy to discuss your options with you and help you maximize the property that you keep.